Date Requested: January 28, 2015
Time Requested: 01:04 PM
Agency: Education, Department of
CBD Number: Version: Bill Number: Resolution Number:
2278 Introduced HB2491
CBD Subject: Education (K12)


FUND(S):



Sources of Revenue:

Other Fund N/A

Legislation creates:

Neither Program nor Fund



Fiscal Note Summary


Effect this measure will have on costs and revenues of state government.


    The purpose of this bill is to require the State Board of Education to study the salaries and salary adjustments of new hire teachers in a six state region. The bill requires the averages of those salaries and salary adjustments to be the salaries and salary adjustments of new hire teachers in West Virginia. The bill also provides that the Legislature retains the authority to make additional salary adjustments. The bill also requires rule-making.



Fiscal Note Detail


Effect of Proposal Fiscal Year
2015
Increase/Decrease
(use"-")
2016
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 129,396,311 129,396,311
Personal Services 0 0 0
Current Expenses 0 124,126,857 124,126,857
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 5,269,454 5,269,454
2. Estimated Total Revenues 0 0 0


Explanation of above estimates (including long-range effect):


    The estimated cost to the State under the Public School Support Program for the proposed legislation is $124,126,857 and the estimated cost to the County Boards of Education is $5,269,454 for a total estimated cost of $129,396,311.
    
    The estimate was calculated using the most recent average starting teacher salary information available for the six states included in the legislation as obtained from the National Education Association (NEA) website. Per review of their 2012-13 Average Starting Teacher Salary information, the six state average starting salary was $37,130. The current state minimum salary for a beginning teacher with a Bachelor's Degree and zero years of experience is $32,675, a difference of $4,455.
    
    A $4,455 across the board increase was applied to the projected FY16 Step 1 - Allowance for Professional Educators for an estimated increase of $91,202,687. Step 3 - Allowance for Fixed Charges has a corresponding estimated increase of $7,843,431 and Step 6 - Allowance for Current Operations & Substitute Costs has a corresponding estimated increase of $11,400,336. Retirement costs are estimated to increase by $13,680,403.
    
    For Step 5 of the PSSP, the allowance is fixed at the 2012-13 amount but the county boards of education would be required to also provide a $4,455 increase to those state aid eligible counselor and nurses using their own funds since the proposed legislation does not change the Step 5 calculation. The estimated cost for the Step 5 personnel is $5,269,454.
    
    This fiscal note does not include the significant additional costs to the county boards of education that would also be responsible for the all professional educators over formula, all professional personnel employed using state, federal or local grants, all professional personnel working in positions not eligible for state aid funding, and all extended employment terms.



Memorandum


    



    Person submitting Fiscal Note: Brenda Freed
    Email Address: bfreed@k12.wv.us